Debt Free By December 2007 (Hopefully)

CathChat

Light bulb moment 26th July 2006.:idea:

I have sat down with my partner and calculated how much debt we are actually in.

Credit Cards(Will get back on the APR)

Capital One- £ 986.7400(Limit £1,000.00)
Barclaycard- £ 1,365.00(Limit £1,500.00)
HSBC Card- £ 492.82(Limit £485)

Loans

Tesco Loan- £ 5,765.92
HSBC Loan- £11,258.52
First Direct Loan-£ 904.60
Family Loan- £ 2,032.00

Other Bills

Catologue- £ 200.00


Overdraft

Total £1,500.00


Total Debt £24,505.60

Ouch, it hurts seeing it in black and white like that.

Anyway here is our SOA.

Salaries


Mine £ 770.00
Partners £ 935.00

Total £1,705.00


Monthly Outgoings

Tesco Loan £360.37
HSBC Loan £216.51
FD Loan £ 91.23

Rent £225.00
Insurace £116.54
Fuel £ 80.00
Bank Charg £ 15.00
Food £140.00

Total £1,244.65

Spare £ 460.35

The reason we have £460.35 left over is because my partner has just received a large pay rise (July 06's Pay).

It was then we decided that enough was enough and figured out exactly how much debt we were in.

The above is now my strict budget which we need to stick to to achieve being debt free by Dec 2007.

Will Keep you all updated!:beer:

Macduff_3

First of all - congratulations on your lightbulb moment! You've taken the first step and you should be really proud of yourself.:beer:

Try not to be too strict with yourself. A successful budget works because you have not underestimated what you have to spend. If you trim things down too much you'll go mad very quickly. :mad:

Although you want to be debt free quickly, it might be worth being a little less strict and adding 6-12 months to your debt free time.

How much strain is the super-harsh budget going to put on your relationship with your partner?

I applaud your determination but I really would think again about being so Spartan.

CathChat

Thanks Macduff.

We really want to get out of debt so we can start saving for a house.

At the moment we have no savings at all, but I feel more positive just writing it all down!:p

James240

hey Cathchat well done for ur light bulb moment am trying to be debt free by december 2007 my self although as it stands its feb 2008 ill race u to being debt free though

James240

by the way do u have PPI insurance on the loans? i got rid of mine on my loan and it took over £1500 off on the amount i owed instantly

CathChat

No there's no insurance on the loans (waste of money)

The race is on!:rotfl:

James240

CathChat wrote:

No there's no insurance on the loans (waste of money)

The race is on!:rotfl:

your on! :rotfl:

Bendybops19

James could i get the insurance taken off then? I didnt realise i could actually go and do that! Would my monthly payments go down as well if the insurance is taken off?
I dunno why i took out the insurance thingy:o , the guy at hsbc really pushed me into the loan - its bloody awful!! I owe something like nearly £2k extra than the money i took out for a car! :eek:
Anyways, Jen's ready to sort it all out finally! lol

James240

Bendybops19 wrote:

James could i get the insurance taken off then? I didnt realise i could actually go and do that! Would my monthly payments go down as well if the insurance is taken off?
I dunno why i took out the insurance thingy:o , the guy at hsbc really pushed me into the loan - its bloody awful!! I owe something like nearly £2k extra than the money i took out for a car! :eek:
Anyways, Jen's ready to sort it all out finally! lol

Jen :hello:i just phoned up Egg and they very helpfully took it off with out arguing. Must admit i dont know about other Loan providers but there is definatley no harm in asking them if u are able to take it off. From reading some peoples posts on here though i think that some people have had problems in taking it off though, give HSBC a call and ask them hun. I reckon the reason he pushed so hard for u to have this is that they must be on some sort of commission :rolleyes:good luck hun and let me know what happens x

CathChat

Yeah they must earn something from the insurance. When I had my loan from first direct they basicly told me that I had to have insurance or they would not "look in my favour", so I took out insurance to get them off the phone and cancelled it 2 days later (30 day cancellation policy).

I find payment protection one of the biggest ways of getting people further in debt. Usually you need a loan to pay off other debts, but just end up further in the !!!!!!.

Anyway Moan Over.

Its only bloody Friday!:beer:

GreyPilgrim

welcome and congratulations on the lightbulb!

Would echo what has been said already, don't be too harsh on yourself. It's very hard to go so long without a little treat from time to time. You will go insane and depress yourself. I don't mean a holiday or something huge like that...maybe the occasional bottle of wine after a long period of scrimping to pat yourself on the back with (and then drink)

GP